BlackRock, New Zealand launch $1.2b climate fund
BlackRock will manage a climate fund launched alongside the New Zealand government with a target of NZD 2bn (USD 1.2bn). It will focus on renewable energy.
The New Zealand government will not invest directly in the fund, and no details have been provided in terms of a commitment from BlackRock. Megan Woods, New Zealand’s energy and resource minister, said the fund aimed to attract superannuation funds and private sector funds.
The fund was launched on August 8 and touted as the first clean infrastructure initiative of its kind at an event hosted by Prime Minister Chris Hipkins, Woods, and representatives of BlackRock. This is the first time BlackRock has managed a single-country decarbonization fund.
The idea is to support a government goal to reach 100% renewable electricity by 2030; energy in New Zealand is currently about 82% renewable. Investments will span wind, solar, green hydrogen, battery storage, and electric vehicle charging. The fund will not make direct investments in state-owned power companies, according to local media.
“New Zealand doesn’t just have the ambition to build a more resilient energy system and be a leader in decarbonization globally. It is already doing that today,” BlackRock CEO and chairman Larry Fink said. “As we approach COP28 at the end of this year, the world is looking for models of cooperation between the private and public sectors to ensure an orderly, just, and fair energy transition.”
BlackRock made its first investment in New Zealand renewables last year, paying NZD 100m for a 100% stake in SolarZero, a company that claims to have built Asia Pacific’s largest “virtual power plant” using various smart battery and energy management technologies. That transaction provided an exit for Pencarrow Private Equity, which invested NZD 5m in late 2014.
SolarZero’s core offering is a residential solar system said to allow homeowners to reduce their power expenses by up to 30% compared to buying electricity from the grid. The relevant hardware – developed in partnership with Panasonic – remains the property of SolarZero, which manages installation, maintenance, and servicing.
“Our move into New Zealand demonstrates BlackRock's commitment to invest in attractive markets as part of our broader efforts to offer a flow of addressable global climate investment opportunities for our clients,” Charlie Reid, Asia Pacific co-head of BlackRock's climate infrastructure team, said at the time of the SolarZero acquisition.
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